Opposition doubtful over HPP purchase by state-owned company

TIRANA, May 15 – Opposition Socialist Party experts have denounced the purchase of a small hydropower plant by Tirana Water Supply Directorate under a loan as an illegal financial manoeuvre between a state-owned institution managed by Tirana Municipality and a state-owned asset such as the Lanabregas HPP.
Erion Brace, an opposition Socialist Party MP says the operation is similar to the purchase of state-owned Dajti Hotel by the Bank of Albania for 30 million euros three years ago in order to inject money into cash-strapped state budget.
“This is a real moderation of injecting money into the state budget. It’s the same as the operation for the sale of Dajti hotel which after three years remains a graveyard in the middle of Tirana. Government needed money and this is the hidden debt government cannot take on its own but obliges state-owned enterprises to take it from private banks in order to seemingly preserve the public debt which has exceeded the 60 percent threshold,” said Brace.
Opposition Socialist Party representatives at the Tirana Municipal council have described the operation as lacking transparency. Under law, privatizations and concessions should be made based on clear and open competition procedures, say opposition experts who have demanded a hearing with Mayor Lulzim Basha.
Tirana’s water supply and sewerage company said it bought the state-owned Lanabregas hydropower plant for Euro 15 million in an effort to reduce its power costs, the Economy Ministry said this week.
“The Tirana Water Supply and Sewerage is the only company in Albania and the first to make such a purchase which will help meet its electricity needs in all resources and pumping stations, at the Bovilla plant,” said Sahit Dollapi, the company’s director.
The purchase secured through a loan will also help the company provide uninterrupted water supply as power expenditure won’t be included in calculating consumer prices.
Economy Minister Nasip Naco announced the tender for the privatization of four other small and medium-sized HPPs of Ulez, Shkopet, Bistrica 1 and Bistrica 2 will open from June 4 to 6, 2012.
Situated in suburban Tirana, the Lanabregas hydropower plant annual generation capacity is 37,000 MWh.